Apple is rethinking its film strategy following poor box office results for several high-budget titles, according to sources familiar with the matter, reports Bloomberg.
Despite breaking ground on a new 536,000-square-foot office in Culver City, California, which will serve as its regional headquarters, Apple’s shift is expected to impact its presence in the film industry.
Apple had originally planned to invest $1 billion annually in major theatrical releases but has scaled back its strategy. The company canceled a wide release of Wolfs, intended as a blockbuster film starring George Clooney and Brad Pitt, opting instead for a limited theatrical debut before making it available on its Apple TV+ (streaming today on Apple TV+!).
This change also affects upcoming titles like Blitz, which will follow a similar release approach. Sources indicate that Apple will reduce the number of theatrical releases but still aim for one or two major blockbusters each year, such as the highly anticipated F1, starring Brad Pitt.
Apple’s decision mirrors similar moves by Netflix and Amazon, both of which are also changing their film strategies. Netflix is now making fewer films to reduce expenses say sources. Amazon plans to release more films in theatres, but has yet to create numerous titles.
Hollywood agents and producers are said to be frustrated by what they see as an inconsistent approach from tech giants like Apple. One agent said the lack of clarity on whether films are intended for profit or as a means of marketing for streaming services is causing confusion.
Executives familiar with the industry have urged Apple and Amazon to bring on more experienced film professionals to balance the influence of TV leadership teams.
Apple’s film studio will now focus on producing about a dozen films per year, most with budgets below $100 million, sources said. The company still plans to spend a whopping $1 billion annually on film content, but will prioritize smaller movies over expensive blockbusters.
Next year, Apple plans to release F1, a Formula One racing drama set for a wide release in the summer. The movie’s budget is said to be over $300 million, and if so would be Apple’s most expensive project to date. Some executives say F1’s success or lack thereof will determine Apple’s film strategy for wide movie theatre releases.
What do you think about Apple’s plans to release blockbuster films? What’s been your favourite so far?
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